$100M in Short Positions Suggests Solana (SOL) May Struggle to Surpass $235: Report
Published by: Chandan Gupta
Date: January 29, 2025
Bearish Signals for Solana (SOL): Is the $300 Target for 2024 Still Viable?
As the broader cryptocurrency market faces a downturn, Solana (SOL) has caught the attention of traders due to its recent price action. On January 29, 2024, blockchain transaction tracker Whale Alert reported that a crypto whale transferred 220,308 SOL—valued at $52 million.
Crypto Whale Moves $52 Million in SOL
The significant transfer occurred from the crypto exchange Bitfinex after the U.S. market opened. Analysts suggest this could indicate accumulation by the whale, as SOL experiences a notable price dip.
Despite this accumulation, SOL's price remains under pressure, currently hovering around $227 after a 2.56% drop in the past 24 hours. On-chain data from Coinglass reveals a strong bearish sentiment among traders, with a Long/Short ratio of 0.77—indicating that 57% of top traders are holding short positions, compared to 43% with long positions.
Bearish Sentiment Among Traders
In addition to reduced market participation, intraday traders appear to be favoring short positions, as highlighted by Coinglass. At press time, SOL's Long/Short ratio of 0.77 further reinforces the prevailing bearish sentiment.
$100 Million in Short Positions Weighs on SOL
Current market trends indicate that short sellers have amassed over $100 million in positions at the $235 level, suggesting that SOL may struggle to break above this resistance.
Meanwhile, bullish investors seem exhausted, holding only $40 million in long positions at the $215 level. If market sentiment does not shift, these positions could be easily liquidated, potentially pushing prices even lower.
